The 62nd Annual General Meeting of the Dyestuffs Manufacturers’ Association of India (DMAI) and Awards Presentation function was held on Friday, the 8th June 2012 at Hotel Sea Princess, Juhu Tara Road, Santacruz(W), Mumbai.

Shri Srikant Kumar Jena, Hon Minister of State (I/c) for Statistics & Programme Implementation and Minister of State for Chemicals & Fertilizers, Govt. of India was expected to be the Chief Guest.Due to some exigency, he could not attend the meeting.Dr.Kavita Gupta, Addl.DGFT, Ministry of Commerce & Industry, Govt. of India, Mumbai was the Guest of Honour.More than 100 members of the Association, special invitees, guests & other dignitaries and Press attended the meeting.

BUSINESS SESSION

Before commencement of the Session, two minutes silence was observed in the memory of Dr.Bakul Patel, who had served DMAI very efficiently and diligently and rendered yeoman services in different capacities and as President for the years 1986-88 and also Prof. E. H. Daruwalla, who was Director of ICT, Mumbai.

In his brief address, President Shri Ram Ajekar welcomed the members.

Hon.Secretary, Shri C.K. Singhania, while presenting the Annual Report for the year 2011-2012, highlighted the various activities of the Association as under :

Representation to various Ministries

-Representation for VAT refund and extension of eligibility norms and benefits under schemes for our industry by removing restrictions

-Representation for un-interrupted supply of technical grade urea as well as potassium chloride to our members

-Representation for marking of packages for export goods (Matter was subsequently resolved in our favour)

-Made strong representation to the Ministry of Finance for reduction of Basic Customs Duty for Crude Napthalene

-Submitted Review Petition on Anti-dumping investigation concerning imports of Aniline originating in or exported from European Union

Shri Kamal Kapoor, Hon.Treasurer thereafter presented the Audited Income & Expenditure Account for the year ended 31st March 2012 and Balance Sheet as on 31-3-2012.

Shri Jitendra Patel declared the election results of un-opposed Office Bearers and 7 Managing Committee members for the years 2012-2013 & 2013- 2014.

In the lively question-answer session that followed, the Incoming President Shri Janak Mehta clarified the various queries raised by members on issues like refund of VAT, appreciation of US Dollar against Indian Rupee, reluctance of Banks for release of full export realizations, availability of technical grade urea etc. to the satisfaction of the members.

OPEN SESSION

The second session commenced with recital of National Anthem.

Shri Jitendra Patel, Hon.Secretary compeered the proceedings.

Imm. Past President Shri Ram Ajekar in his address welcomed the gathering.He also thanked Dr.Kavita Gupta, Addl. DGFT for her participation as the Guest of Honour despite her busy schedule, particularly in view of the fact that about 2/3 rd of our industry production goes for export, which is under her Department.He also thanked all the Office Bearers and Managing Committee members during his tenure as the President for the last three years and all other members of the Association for their support and active participation.He thanked the Incoming President Shri Janak Mehta specially for shouldering a lot of responsibilities and was confident that DMAI would attain greater heights under his able leadership.He further stated that DMAI had stepped up its activities and achieved many milestones during the last few years and that, he was lucky to be a part of it.

Shri Ajekar recalled about the successful conduct of Interdye Asia 2011 Exhibition in Ahmedabad with China Dyestuff Industries Association in December 2011, which was a grand success.DMAI also submitted the 3rd Ten year Strategic Action Plan 2011 to 2020 to the Govt. wherein an ambitious target for the industry to grow from US$ 3.4 billion to US$ 10 billion with an aspirational target of USD 14.5 billion and an export target from USD 2.3 billion in 2010 to USD 6.8 billion with an aspirational target of USD 8.9 billion was set.He hoped that with the Govt. support for implementation of various proposals mentioned therein, the set targets would be achieved without much problem.The challenges the industry is facing and our recommendations to the Government and industry to overcome those challenges were also spelt in there.

As far as our industry is concerned, Shri Ajekar mentioned that it has witnessed excellent growth during the last two decades by reaching USD 3.4 billion in 2010 from about USD 1.15 billion in 2000.Exports have grown from a mere USD 480 million in 2000 to USD 2.3 billion in 2010.He further stated that China and India have become the main players.A very fast growth rate in China has now slowed down.We have been in regular interaction with our Chinese counterparts.Lastly we met them during China Inter Dye Exhibition in April 2012.It was then understood that their costs are rising, currency getting stronger, labour cost having risen very sharply and that, they are also becoming stricter on environmental front.The Chinese Government is, however, very proactive.Their Government is now directing the industries to move towards north, where they have provided all the infrastructure facilities.In addition, the Govt. is giving subsidy to the industries to the extent of over 80% of the cost of relocation.In the new locations, the environmental norms are expected to be lax for at least 10 years.In this background, India has an opportunity to grab a greater share of the world market, substantially increasing from the present about 15% as against China’s 27%.We have the potential to not only equal China’s share, but also even surpass it if we in the Industry and the Government play our respective roles effectively, he averred.Towards this end, many things need to be done such as infrastructure like availability of dedicated land, power & fuel, better logistics, availability of feed stock and huge skilled and unskilled manpower including Chemistry Graduates, taxation reforms (introduction of GST is getting postponed), labour reforms, proactive and realistic environment norms etc.We, in the industry, also have to discipline ourselves, improve efficiency, reduce cost, seriously look at and take steps for safeguarding environment, Shri Ajekar cautioned.Further, it is equally important to undertake R & D and wherever possible, innovate and adopt Green Chemistry to reduce pollution at source.Government is also taking proactive steps on Green Chemistry initiatives.

While dwelling on the set targets, Shri Ajekar made a pointed reference to the ground reality.The most urgent problem requiring our immediate attention is environmental issues.He felt that some of the industry leaders should come together to discuss and prepare a road map to overcome the challenge like closure of units, partial operations, high cost of intermediates etc.It is essential that effluents are treated, even if at a high cost and factor the cost of treatment in the sale prices.He hastened to add that this will have to be done by all of us simultaneously across the board.

Referring again to R&D and Environment protection Shri Ajekar added that we must find new processes and technologies to improve existing products and invent new products, which do not cause environmental damage - either while manufacturing or using. We also need technology to treat effluents at a minimum cost.DMAI has submitted proposal to our ministry to help the industry financially in these areas, including new market development.He was very happy that our parent Ministry is considering these proposals favourably.Shri Ajekar concluded that concerted efforts in these areas are a must without which the industry cannot survive, leave alone the kind of growth that we are looking for.

Dr.Kavita Gupta, Addl.DGFT presented the Annual Awards from the industry for the year 2011-2012 for excellence in several fields like Performance in the exports of Dyestuffs, Dye Intermediates, Optical Whitening Agents, Pigments, Domestic Market, Pollution and Safety, Hazards Control Management under various categories. Dr.S.K. Bhumgara, member of the Awards Committee declared the award winners under each category.Citation was also conferred on the technical awardees.As per the past tradition, cash prize of Rs.7500/- each with a trophy sponsored by our members and certificate was also presented to the students of ICT, Mumbai, who had topped their respective classes for 2010-2011.Member units having got ISO 9001-2008 Accreditations were also felicitated with the Certificates of Merit.

In his Presidential address, Shri Janak Mehta thanked the members for reposing their confidence and electing him un-opposed as the President for the next 2 years tenure and expressed his optimism of taking our august organisation further with their support and co-operation.He also congratulated all the Award winners.

Shri Mehta stated that over the last few years, DMAI profile has undergone a sea change and crossed the national barriers reaching out to global markets.We have organised international events such as Interdye Asia 2011 Exhibition in December 2011 and led delegation to China Interdye 2012 Exhibition in Shanghai, China and participated in ITMA 2011 Exhibition in Barcelona, Spain, wherein a presentation was also made.DMAI has also forged a strong and constructive bond with ICT, Mumbai as a result of which four editions of COCs were also successfully conducted.We have also worked in close association with the various Govt. Departments on various issues concerning the industry and culminating into satisfactory solution to many of them.But for the proactive support of the members in large numbers, this would not have been possible, Shri Mehta averred.

Shri Mehta pointed out about the constitution of a Task Force for the Chemical Industry by the Govt. of India, wherein he was invited to be a member from the Colorant Industry.A National Chemical Policy, which is on the Govt. website, is on the anvil.Ambitious targets for growth have been set taking into consideration the past envious growth of the industry, when more than Rs.12000 crores exports were achieved during 2009- 2010.In the Strategic Action Plan for Growth submitted recently by us to the Govt., it is estimated that the exports should reach US$ 6.80 billion by 2020.

Our share of the global market would grow to about 30% by the end of the decade.The world looks at India as the leader and we have to be proactive in this endeavour, Shri Mehta stressed.Though China has about 27% of the global market share now and as our close competitor, we should complement each other, as it is expected that both the countries would account for more than 50% of the world business in the days to come.India has been recognised as the leader among BRIC countries to reach the next orbit by adopting new model, notwithstanding many challenges like REACH Regulations etc.This has put the onus on Indian colorant industry.

Additionally, environmental concerns and health & safety control measures pose a serious challenge on the industry, Shri Mehta pointed out.With the support of the Govt., these challenges could be overcome.Adoption of the Green Chemistry will be a pointer towards this direction. While soliciting the Govt’s positive approach, Shri Mehta referred to the sudden banning of Azo Dyes in the past.Both the industry and Govt. should work hand in hand so as to reach our targets, he asserted.

In conclusion Shri Mehta extolled the leadership qualities of Shri Ram Ajekar, who was the President for the last 3 years of our Association.We have worked as a team taking the interest of the industry as the prime goal, which was the hallmark of our Association all these years.Shri Mehta was sanguine that with the help and support of all the Managing Committee members and DMAI Secretariat, we will continue to work ahead to scale new heights for our august organisation.

At the outset, Dr. Gupta thanked DMAI for inviting her to participate in the AGM as the Guest of Honour.She congratulated the award winners from both the industry and academia.She also complimented non-awardees, as they have to strive hard for winning such laurels in future, taking the awardees as role models.

Dr.Gupta made a pointed reference to the colorant industry stating that life without color becomes lifeless, as color is the integral part of human life.She congratulated the industry for having achieved all the set targets for exports in the past.For the year 2009-2010, exports crossed Rs.12000 crores. She was happy that the Indian colorant industry is one of India s leading foreign exchange earners. Whereas India s overall share in the global trade is less than 1%, Indian Colorants Industry accounts for almost 15% of the Colorants global market.She was confident that set targets for the industry would be easily achievable due to the entrepreneurial and business acumen of the Industry.Dr.Gupta implored the audience that one should aim for sky, so that even reaching at least another galaxy will not be a difficult proposition. Members should compete and complement each other to achieve their goal.

Dr.Gupta mentioned about the recently announced new Trade Policy on 5th of June 2012 by GOI thereby extending power-breaking incentives for nearly 7 highly focused industries to enable the exporters to excel in the global market.She urged upon them to avail of these incentives to increase the exports from the country.Globalization has paved the competitive edge in an advantageous situation for the exporters.She cautioned about the non-tariff barrier, which would play a vital role in the field of exports in future.She also stressed the paramount need for protection of the environment and human safety and health.It is all the more necessary to protect the labour force, which will greatly improve productivity as in Germany, where the productivity is 3 times more than in our country due to tripartite involvement among the labour, management and Govt.

While elucidating the initiatives taken by her office, after her taking over, like interface meetings with Counsel General of various countries such as Brazil, Switzerland and Iran, Dr.Gupta reported that they have really opened up the avenues for exports both quantitatively and qualitatively.Regarding the burning issue of refund of VAT, she announced that a Study Group has since been constituted in Mantralaya, Maharashtra State to assess the various trivial and problematic issues seeking representations from different industries for better deal, which shall be implemented within the next 2-3 months.

While summing up her well-versed address, Dr.Gupta assured the audience that anyone can approach her directly for redressal of any problem, even without prior appointment on any working day.All such dealings will be absolutely kept transparent.She has inculcated among her staff an attitude of change for image building, which has resulted as a trend change.Dr.Gupta concluded her address with profound gratitude to DMAI and wished all success to it and its members.

Shri M.H. Parmar, Dy.General Manager, National Small Industries Corporation Ltd.(NSIC) thereafter apprised the audience about the various schemes of assistance extended to SMEs by NSIC and appealed to them to take advantage of these schemes for their business promotion.